Crius Energy Targets New Markets, Including Texas

Crius Energy intends to expand its Viridian Energy brand into five new states in 2014, including Texas.

Specifically, during an earnings call, Crius said that it plans to expand geographically into the electricity markets in Texas, Ohio, and Rhode Island, and natural gas markets in Indiana and California.

As of March 31, 2014, Crius had about 587,000 electricity and natural gas RCEs, down from 615,000 as of December 31, 2013, representing a net loss of about 28,000 RCEs.

The March 31, 2014 total excludes 40,000 RCEs acquired from Superior Plus after the end of the quarter.

Crius reported an adjusted EBITDA loss of $4.3 million for the quarter ending March 31, 2014, versus adjusted EBITDA of $5.5 million a year ago. The loss was driven primarily by lower gross margin.

Gross margin for the quarter was $19.1 million, representing 10.7% of revenue, compared to $20.9 million in the prior-year comparable period, representing 17.5% of revenue.

The decline in gross margin reflects a strategic choice to proactively manage customer price increases in order to mitigate customer attrition, Crius said.

"While prices charged to variable rate customers were increased to reflect the incremental cost borne to meet increased customer demand, the price increases were capped to reasonable levels and applied on a staggered basis such that cost recovery and migration to higher rates occur over time. As a result, first quarter results include energy costs incurred in the period but do not reflect the planned cost recovery priced through to these customers which is expected to result in improved gross margin and Adjusted EBITDA over the remainder of the year," Crius said.